South Korean Firms Secure $950 Billion in AI Semiconductor Pre-orders from U.S. Tech Giants

South Korean semiconductor leaders Samsung Electronics and SK Group have secured significant long-term supply agreements with major U.S. tech companies, including Nvidia and Broadcom. The deals, valued at a combined $950 billion (approximately 1,375 trillion Korean won), were announced during President Lee Jae-myung's visit to the United States.

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Based on our world-class memory semiconductor competitiveness and production capabilities, we will become a reliable AI semiconductor production base and supply chain partner.

Samsung Electronics signed a memorandum of understanding with Broadcom to supply advanced memory semiconductors and engage in foundry cooperation for AI chip production over the next five years, worth $200 billion (290 trillion won). SK Group is pursuing a similar five-year agreement with Nvidia and others for advanced memory semiconductors, valued at $750 billion (1,085 trillion won).

President Lee Jae-myung, speaking at the AI Summit in San Francisco, declared South Korea's ambition to become a trusted AI semiconductor production base and supply chain partner, leveraging its world-class memory semiconductor capabilities. Kim Hyung-jun, head of the Next-Generation Intelligent Semiconductor Business Group, stated that these long-term contracts will enable continuous expansion of semiconductor plants and foster significant growth potential for the industry.

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This is a memory pre-order, a long-term purchase contract for the next five years from companies like Nvidia and Broadcom. It ensures that our companies can produce semiconductors stably.

In addition to these major deals, Naver has partnered with Nvidia and Brookfield to build AI factories worth $10 billion (15 trillion won). Hyundai Motor Group is also collaborating with Nvidia on a "Robot Reference Platform" for developing and verifying AI robots. These collaborations underscore a strategic push to integrate South Korea's advanced semiconductor technology into the rapidly evolving AI landscape.

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With long-term contracts with U.S. tech companies, we can continuously expand our semiconductor plants, and the potential for semiconductor growth has increased.